Quilter simplifies its business with international sale


Quilter simplifies its business with international sale


Published Date: 2021-04-06 | Source: Stephen Gunnion | Author: Stephen Gunnion

Quilter simplifies its business with international sale

The wealth manager says it may return the majority of the proceeds from the disposal to its shareholders.

Quilter has reached a deal to sell its international business to Utmost group for about £483-million. It says the disposal follows a detailed strategic review of its business and will result in a higher-growth, UK-focused operation.

The wealth manager, which was unbundled and listed on the London Stock Exchange by Old Mutual in 2018, said its board of directors was unanimous in agreeing that the sale of Quilter International would be in the best interests of shareholders and was likely to support the continued delivery of good outcomes for customers and other stakeholders. The sale price for the Isle of Man-based investment company included a 5% interest change on the base consideration of £460-million from 1 January 2021 to completion of the transaction, implying a price to 2020 Solvency II Own Funds multiple of 0.84x. Completion of the deal is expected to occur at the end of the year, conditional on shareholder and regulatory approval.

Quilter said an allocation from the net cash proceeds of about £450-million after transaction costs would be applied as a contribution from Quilter International to the group's full-year 2021 dividend on a pro rata basis. It said it may also pay the majority of the remaining cash to shareholders as a capital distribution but would make a final decision at the time of the completion of the sale after taking market and business conditions into account, as well as potential investment opportunities.

CEO Paul Feeney said the sale represented "an attractive valuation for our shareholders and an excellent outcome for all stakeholders".

Quilter's shares closed 5.1% up at R34.08 on Thursday.


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